State of the Indian Economy

Abstract

India's macro-economic fundamentals are inspiring confidence and investment climate. The economy has continued with a growth in GDP at market prices exceeding 8 % since 2003-04 with projected growth of 8.7 % for 2007-08. Per-capita private consumption expenditure has increased. Year to year changes in consumption also suggest that the rise in consumption is a more gradual and steady process as any sharp changes in income tend to get adjusted in the saving rate. Faster economic growth is translating into more inclusive growth both in terms of employment generation and poverty reduction. The increasing reserves and pressure on the rupee necessitate raising the limit on the market stabilization fund. Sustaining growth and resilience in the face of shocks such as global slowdown, high energy and commodity prices bring forth India's strength from domestic market-driven economic system.